Monthly update: June 2026

Borrowing in June was lower than a year earlier and slightly below the official forecast, though still the seventh-highest June on record.

Released 21 July 2026. provisional

What changed, and why

What changed this month?: The government borrowed £16.0 billion in June 2026, the gap between what it spent and what it raised. This was £7.9 billion less than the same month last year and slightly below the OBR forecast.
Why did borrowing move?: Tax receipts grew strongly while debt interest costs fell sharply, more than offsetting higher spending on public services and benefits.
What happened to tax receipts?: Receipts grew strongly over the year, led by income tax, corporation tax and VAT.
What happened to spending?: Debt interest fell sharply, but spending on public services, benefits and other costs rose, leaving overall spending slightly lower than a year earlier.
What happened to debt interest?: Central government debt interest payable was £11.8 billion in June, £5.3 billion less than a year earlier, as the inflation uplift on index-linked gilts was far smaller than in June 2025.
How does this compare with the OBR forecast?: Borrowing came in £0.3 billion below the OBR's forecast of £16.3 billion for the month, with both central and local government borrowing a little less than expected. For the financial year so far, borrowing of £57.6 billion is still £2.7 billion above the OBR's forecast, so the year is running higher than planned even though this month came in under. One month is a weak guide and figures are routinely revised.

May 2026: Borrowing in May was higher than a year earlier and well above the official forecast, the second-highest May on record.
April 2026: Borrowing in April was higher than a year earlier and above the official forecast, the second-highest April on record.